Legislation

Prior to 1999, Kosovo’s minerals sector was subject to the Yugoslav Socialist Autonomous Province of Kosovo’s Mining Law of 1980 and the Geological Exploration Law of 1983. After the 1999 intervention of NATO, followed by UN Resolution 1244, it was necessary to adapt minerals sector legislation to the changed circumstances. On January 21, 2005, UNMIK promulgated two regulations that addressed this situation.

UNMIK Regulation 2005/3 – On Mines and Minerals in Kosovo – provides the Mining Law for Kosovo, and covers the range of licences that governs the minerals sector throughout the Territory. UNMIK Regulation 2005/3 guarantees security of tenure for the licence holder. Licence types include:

EXPLORATION LICENCE
Construction minerals: Valid for two years and may be extended for an additional two years. There is a maximum area of 250 ha per individual licence. Minimum expenditure is set at €100/ha per year. At renewal, the work commitment minimum expenditure increases to €1,000/ha per year. If the assessed expenditures are less than the work commitment minimum expenditure, then the licensee must pay the difference to the ICMM as an exploration fee.

All other minerals: Valid for two years and may be extended up to three times at two years per extension, accompanied by a 50% reduction in licence area.

There is a maximum area of 100 km² per individual licence. Minimum expenditure is set at €100/ha per year.
At the first renewal (after two years), the work commitment minimum expenditure increases to €1,000/ha per year. At the second renewal (after four years), the work commitment minimum expenditure increases to €5,000/ha per year, and at the third and final renewal (after six years), the work commitment minimum expenditure increases to €10,000/ha per year.

If the assessed expenditures are less than the work commitment minimum expenditure, then the licensee must pay the difference to the ICMM as an exploration fee.

RETENTION LICENCE
Construction minerals: A maximum of one year from expiry of the exploration licence.
Any other materials: A maximum of five years from expiry of the exploration licence.

EXPLOITATION LICENCE
Construction minerals: This includes existing tailings exploitation, and must have an initial term of no more than 25 years, extendable for terms of up to 25 years.
Any other minerals: This includes existing tailings exploitation, lasts for not more than 40 years and can not be extended.

SPECIAL OPERATIONS PERMIT
The term and scope of each special operations permit shall reasonably be established by the ICMM.

ARTISANAL MINING LICENCE
Construction minerals: Valid for two years and may be extended for a further two years. A maximum exploitation is permitted of 12,000m³ in any calendar year. An artisanal mining licence may be issued only to a municipality.
Other permits issued by the ICMM include a crushing and milling permit, a processing plant permit (asphalt or concrete), a transport permit, an explosives import permit, a blasting permit and an explosives storage facility permit.

The administrative fees that accompany exploration and exploitation activities have been designed to cover the costs that accrue to the ICMM in the execution of its duties with regard to reviewing licence and permit applications. Royalties accrue to the ICMM at a rate of €2.50/m³ for sands and gravels, €1.00/m³ for blasted hard-rock construction minerals and €1.00/t for any other non-metallic minerals.